In response to investor concerns over absolute return fund liquidity, Aviva Investors is set to launch its Absolute Tactical Asset Allocation Fund to Australian retail investors.
The United Kingdom-based fund is the first absolute return fund Aviva Investors plans to roll out to the Australian market.
It will be known as the Global Tactical Asset Allocation (GTAA) fund.
"Investors have had concerns about the liquidity of hedge funds, but this is a highly transparent and highly liquid fund," an Aviva Investors spokesperson said.
The fund aims to generate long term capital appreciation and income by implementing active positions in a range of assets.
It was first launched about four years ago and according to recent data underperformed the benchmark in October.
"We have been disappointed that Japan hasn't benefited more from the Asian recovery story. Long positions in Australian dollar and Norwegian Kroner both helped offset the negative impact from equity market selection," Aviva Investors said
Over the 2008 calendar year, GTAA returned around nine per cent compared to the industry benchmark of six per cent.
Aviva Investors is waiting on a rating from van Eyk for the Australian version of the fund.
The firm is also in discussion with other ratings agencies and platforms.
